Direct mutual fund plan is buy you direct from AMC (Assets Management Company- Mutual Fund House), and regular mutual fund plan is buy from an advisor/distributor/broker
If you buy a mutual fund plan direct from fund house call direct mutual fund plan and if you are buy a mutual fund plan from a advisor/ distributor/broker then called regular plan.
Direct MF Plan
Direct plan gives you higher return then regular plan, this plan is direct buy to a fund hose so broker/agent/distributor commission is no added on expense ratio yearly.
Regular MF Plan
Regular mutual fund plan is give you low return compare to direct plan, regular plan add agent/broker/distributor commission on your expense ratio yearly.
You can watch this video for details
NAV (Net Asset Value)
If you look a any mutual fund plan of any AMC you look major different between NAV, Direct mutual fund plan NAV is higher then regular mutual fund plan.
Expense Ratio
Big different between direct plan and regular plan is expense ratio, expense ration is a year charge, year charged by the AMC (Mutual fund house), if you are get a direct plan your expense ratio is low but, but if you’re get a regular plan then expense ratio is high.
Regular plans charge all costs including selling costs, distributor/advisor/broker commission, In case of direct plan all cost are less so directs plan is lower expense.
Expense Ratio Example
Direct MF Plan is Charge 1.5%
Regular MF Plan is Charge 2.5 %
If you are looking a mutual fund plan click below link and signup for the a new account and complete the all registration process, after complete the registration process then review your all details if all information is correct then your account is ready for mutual fund investment.
Click Here for Direct Mutual Fund Plan https://groww.app.link/refe/pankaj5870666
How to Open Demat Account, Demat Account https://thepipl.com/how-to-open-demat-account-demat-account-kaise-khole/